Q&As:
– Safe, accessible, and going backwards — invest beyond bank accounts
– KiwiSaver a good spot for grandfather’s gifts
– My “cavalier response” last week about p/e ratios angers reader
– Comments from a café in Thames
– Why long-term rental leases might not work…
– … And how they might be made to work
Q&As:
– Ignore hot tip about market downturn — unless it scares you
– Switching from term deposits to KiwiSaver in retirement is not without risk
– “Millionaire-making” companies on warnings list
– Weighing up mortgage offerings is tricky
– Covid-19 aside, bank communicated poorly
Q&As:
– Time to accept that cheques are a thing of the past, and learn online banking
– “What’s that?” — the young ask about a cheque book
– For short-term money use term deposits or a cash fund
– Reader misses the point about fun element in Bonus Bonds
– One bank offers car and cash prizes on savings
– How to seek refund if you’ve overpaid tax on NZ Super
What is investment risk and what can you do about it?
New free booklet I wrote: Hit and Myths — an introductory guide to investing — at fma.govt.nz
Today we look at one of the booklet’s 8 Myths About Investing: “Investing is too risky”. Types of risk:
– You won’t get the return you want because of inflation
– You won’t get the return you want because of volatility
– You’ll lose some or all of your money
Importance of diversification
You can also watch a webinar I did with FMA on investing, at fma.govt.nz
Q&As:
– Rule shows how long it takes for an investment — and a debt — to double
– One reader quits Bonus Bonds for term deposits…
– … While another suggests a way to keep the fun rolling on
– Bonus Bonds exit annoys businessman
– Move from term deposits into KiwiSaver fund ups the volatility
– Better to leave the money in two countries than one
Plus:
– Your questions, a webinar and a guide to investing
What to do about low interest rates at banks (and the demise of Bonus Bonds)
– Not as bad as people think
– But still many unhappy
– Suitable alternatives — safe, low volatility — offset mortgages, cash funds, low-risk KiwiSaver funds
– Be braver? — if long-term money — middle-risk KiwiSaver funds. Probably not higher-risk funds or shares or rentals
Q&As:
– Solo mum should check out government help on buying a first home
– Advice for last week’s reader with $1.5 million in the bank — give some away…
– … And put the rest in more than one bank
– Should couple’s KiwiSaver accounts be with different providers?
– The law on relationship property after a couple splits — and how to contract out
The next downturn — in shares, KiwiSaver and other managed funds — might be longer.
But first — comments on what to do about the demise of Bonus Bonds.
– FMA survey on investor confidence.
– Race between NZ and world share markets to recover from Covid downturn.
– Recovery not just shares rebounding, but also bonds.
– Next time we could easily have shares down for longer, and bonds also falling.
Q&As:
– When family trusts cut new partners out of assets, please talk about it
– Self-employed person should keep contributing to KiwiSaver
– Should reader send money back home to NZ from Canada?
– 3 choices for man with extraordinarily bad luck with money
Q&As:
– A clever way to reduce mortgage risk a little
– Westpac denies age discrimination in mortgages
– Boomer vents about NZ Super, but misunderstands
– How to keep inheritance away from separated sister-in-law